Broadcom Aims for $60 Billion Financing Boost in AI Market

Broadcom Inc., a leading chipmaker, is planning to raise $60 billion in new financing for AI customers, aiming to expand the AI infrastructure market. The company's banking syndicate is preparing a $42 billion Class A senior-secured tranche and a $18 billion Class B junior-debt tranche led by Blackstone Inc.

The funding will help companies like Anthropic PBC acquire chips and other computing infrastructure while supporting demand for Broadcom's data-center products. This move is part of the growing trend of companies using debt, private capital, and asset-backed structures to finance AI infrastructure investments, as corporate cash flow alone may no longer cover these expenses.

The report estimates that Microsoft Corp., Amazon.com Inc., Alphabet Inc., Meta Platforms Inc., and Oracle Corp. will spend around $820 billion on capital expenditures in 2026, exceeding their operating cash flow by approximately $70 billion. This gap is expected to widen further in 2027, with capex potentially reaching $1 trillion-$1.3 trillion.

The shift towards leveraging credit markets for AI financing raises concerns about leverage and off-balance-sheet exposure. Investor Steve Eisman has criticized the growing use of special-purpose vehicles and guarantees, warning that soaring infrastructure costs give companies an incentive to move financing away from their balance sheets.